Urgent talks are under way between Anglo American and the Brazilian Government to try to cut through red tape that has caused a costly delay to a $5.8 billion iron ore development by the mining company.

Anglo American’s shares fell by nearly 4 per cent yesterday as the company revealed dismal figures showing a 55 per cent collapse in half-year profits to $2.9 billion.

It has been squeezed by falling prices for coal, iron ore, copper and platinum on the commodities market. But Anglo’s woes were aggravated by an admission that its much-vaunted Minas Rio project in Brazil had been